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Obama: Our Out-of-Control Debt Is ‘Sustainable’ for the Next Decade

Misleading the nation on the way to the abyss.

by
Tom Blumer

Bio

March 14, 2013 - 10:41 pm
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Obama’s statement denying “an immediate (debt) crisis” is consistent with what he was willing to reveal during the 2012 presidential campaign. In October of last year, while unable to identify its amount, he told David Letterman that “we don’t have to worry about it short term.” He also said that “it is a problem long term and even medium term.”

That’s not what Obama told Stephanopoulos in his Wednesday interview. In his very next sentence following the excerpt above, the president did a complete about-face:

In fact, for the next ten years, it’s gonna be in a sustainable place.

Gosh, I had no idea that the nation’s financial situation has improved so much in the past five months. Of course, it hasn’t.

Even given his pathetic opponent, Obama’s ridiculous assertion might have buried him electorally if he had uttered it during the presidential campaign. Assuming he really believes it, he should have. Instead, as has so often been the case, he chose to mislead the American people. “Progressives” have known for decades that they can’t win elections if they tell us what they really believe.

The CBO’s projection leaves 2023 “debt held by the public” at 77 percent of the nation’s annual economic output, or gross domestic product, up from about 41 percent at the end of fiscal 2008. That’s not all that far from the 90 percent of GDP threshold at which many economists consider a nation to be ”maxed out,” i.e., the point at which lenders will likely “either decide to stop lending or raise their interest rates.”

There are plenty of reasons to believe that we’ll hit that 90 percent limit well ahead of 2023. The most important is lackluster employment growth — and yes, it’s still lackluster despite last week’s news that the economy added 236,000 seasonally adjusted jobs in February and that the unemployment rate dropped to a still completely unacceptable 7.7 percent.

Job growth is not “accelerating,” the term used after the report’s issuance by the Associated Press, aka the Administration’s Press. The raw numbers before seasonal adjustment show that the economy lost more net jobs during the past four months than it did during the same four months a year earlier.

To the extent job growth is occurring, it’s largely part-time and temporary in nature. After seasonal adjustment, the government’s monthly Household Survey, which is the basis for the reported unemployment rate, tells us that there were 77,000 fewer full-timers in February than in January, but 102,000 more part-timers. The Establishment Survey, the basis for reported job growth, tells us that temporary help services, a sector which contains about two percent of all employment, have added a seasonally adjusted 109,000 jobs in the past 12 months. That’s over 5.5 percent of all private-sector job growth during that time.

We haven’t seen anything yet. Just wait until employers fully grasp ObamaCare’s impact on their operations. The bias towards hiring part-time workers is what will “accelerate.” Part-time workers pay less in federal income and employment taxes. This will lead to significantly lower federal tax collections, higher deficits than CBO expects, and faster growth in the national debt.

It’s still not inconceivable that we will become “maxed out” by the end of Obama’s second term — especially because the president insists, as he told John Boehner during “fiscal cliff” discussions, that “we don’t have a spending problem.” Oh yes we do — and if we don’t fix it, an abyss which no amount of punitive taxation will prevent awaits.

(Illustration above based on a modified Shutterstock.com image.)

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Along with having a decades-long career in accounting, finance, training and development, Tom Blumer has written for several national online publications primarily on business, economics, politics and media bias. He has had his own blog, BizzyBlog.com, since 2005, and has been a PJM contributor since 2008.

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Top Rated Comments   
I'll say it again, obama is just being who he is.... completely unqualified to hold the position of power he has. My quarrel is and always will be with the fools that elected him in the first place and even more so with the complete fools that reelected him. If there is, in reality, any sort of recovery, it hasn't been because of obama, it has been in spite of him.
1 year ago
1 year ago Link To Comment
" as the government certainly has a responsiblity to provide the best enviornment for a robust economy and monetarty system."

Obama believes no such thing. He only beives in providing the best environment ... ... for him.
1 year ago
1 year ago Link To Comment
One of the videos on the site today showed a segment on the Kimmel show, where he had people out on Hollywood Blvd. asking what they thought of Obama pardoning the sequester and sending it to Portugal. The ones they showed answering acted like it was an intelligent question, and they were trying to look intelligent answering it, even though they didn't understand it. We truly are doomed...these people all voted for this moron, and he's going to run the country right off the cliff...
1 year ago
1 year ago Link To Comment
All Comments   (38)
All Comments   (38)
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I see where my original post has been deleted. Is that to be assumed that some cannot deal with legitimate historical facts that do not support a particular partisan bias motive?
1 year ago
1 year ago Link To Comment
Obama will keep coming up with wild excuses for avoiding his responsibilities. He has no credibility, yet the "news" media refuses to hold him to any common standards.
1 year ago
1 year ago Link To Comment
The "sustainable for ten years" meme is from Nobel winning economist and honorary pit yorkie Paul W. Krugperson.
1 year ago
1 year ago Link To Comment
OK...if anyone has this on tape, we can NOW invoke the 25th Amendment. The man is friggin nuts!
1 year ago
1 year ago Link To Comment
What do you do about people who want to be decieved?
1 year ago
1 year ago Link To Comment
Lying to Obama is second nature to him. He learned how to lie at Muslim school as a child. It is taught to muslims because lying (taqiyya) is how you get around the truth that most of western civiliization upholds. So our Muslim-in-Chief has no regard for truth, or what is best for America
1 year ago
1 year ago Link To Comment
I've got to say, there is something to what you are saying. While living in Indonesia I had a friend quit the local school she was teaching at because she was disgusted with what the books taught. The stories championed the little boy who was sly and would out smart or decieve the others.
1 year ago
1 year ago Link To Comment
These numbers are going to be very low. Obama is doing all that he can to gut the US economy what with Obama and its taxes, regulations, and soaring costs, to new environmental regulations that will kill the energy and agricultural segments of the economy. As these attacks kill more jobs, put more people on the dole, and the economy fails, debt will necessarily skyrocket beyond these numbers.

When it does, the government will turn to hyperinflation because no one will lend it money. Actually that is already happening since most debt is now a shell game between the Federal Reserve and the Treasury and not from foreign or domestic lenders. Rather than stimulate the economy, hyperinflation will just pull the handle flushing it right down the tubes.
1 year ago
1 year ago Link To Comment
Whenever a radical leftist begins talking about formulating a strategy for a free market society, put your valuables in the vault.

Radical leftists are always looking for ways to advance the revolution. And hide what they are doing.

They refuse to submit a budget. What they do submit ought to begin "Once upon a time"...

The "Too Stupid For Words" media, carry water for the Revolution. And...as the radical left's waterboys...they help hide the intent. In fact, "Hide the Decline" is the new motto, not just for the global warming hoax, but for all of leftism's attempt to build a nation by the state, of the state and for the state.
1 year ago
1 year ago Link To Comment
"In other words, he’s betting against the intelligence of a large percentage of the American people, while also calculating, probably correctly, that his lapdogs in the establishment press won’t call him out for doing so, and will in fact support his misdirection."

Hey....... It worked for him in the last two Presidential elections, so why won't it continue to work. After all, race trumps EVERYTHING!!
1 year ago
1 year ago Link To Comment
"Relax" said the captain of the Titanic, "we aren't going to sink for ten more minutes.
1 year ago
1 year ago Link To Comment
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